NZ ETS considers auctioning mechanism

The New Zealand government has committed four years of funding to the development of a supply management strategy for its emissions trading system (NZ ETS). The development of this strategy will include the consideration and design of an auctioning mechanism, on which a political decision is yet to be taken.

The funds cover both the design and potential operation of the system. The Ministry of Environment (MoE) stated that its development would require at least 18 months and that the eventual establishment of an auctioning mechanism would be preceded by consultations about the cap and its design.